Many of our clients are concerned about the so-called Federal Payday Loan Rules that were written in 2017 with an effective date in 2019. The Payday Loan Rules were authored by a governmental agency known as the Consumer Financial Protection Bureau or CFPB. Today, the CFPB was ruled as unconstitutional by a judge in New York. Judge Loretta Preska in Manhattan said the composition of the bureau violates the Constitution’s separation of powers. However, in January a court in Washington D.C. ruled the CFPB was constitutionally organized. Because two courts have ruled the opposite, legal analysts say the matter could reach the U.S. Supreme to determine if the CFPB is constitutional. Please find additional information at the following links:
https://www.washingtonpost.com/national/judge-consumer-finance-agency-unconstitutionally-set-up/2018/06/21/da503ff4-7573-11e8-bda1-18e53a448a14_story.html?utm_term=.a77a9d245cd1
http://whbl.com/news/articles/2018/jun/21/us-consumer-protection-agencys-structure-is-unconstitutional-judge/
Here is a link to an article on the Washington DC U.S. Court of Appeals:
http://www.abajournal.com/news/article/full_dc_circuit_upholds_structure_of_consumer_financial_protection_bureau